Another day of approximately $200 in profit (1.25% of the account value) for the Freaky Fast today. Thanks go out to Abbott Labs (ABT) for the tremendous work they accomplished in coming up with a quick, easy, cheap Covid test.
Our September 105/110 call spread gained $163 today. We’ve still got a lot of profit left to get out of it, as it will be worth $500 if ABT is over $110 on September 18. I want to get at least $400 of that, which would be more than a 400% gain on our $78 investment. Something is wrong with the bottom of this P+L graph, but on the profit side, that’s accurate for how we stand to profit. As we move closer to September 18, that purple line will move closer and closer to the blue line.
We also had a good day with AKAM, as our Nov $120 call gained $130. Below, you can see that I’ve got a first profit target sitting right there at $121. I would expect AKAM to have a little bit of a challenge breaking through there. Also, the all-time high of $116.39 still needs to be eclipsed. So if this is up tomorrow, and I can get a good price for it, I’ll sell the Sep $121 call against the one we’re long, turning this into a diagonal call spread.
It wasn’t all good today, however, We dropped about $70 on our EBAY call and are now down $65 in that position. There’s a pretty good chance we’ll cut our losses there tomorrow.
A number of our stocks had days that concern me from a candlestick pattern perspective. These include DPZ (where we have lots of gains we’d like to hold onto), LULU, MCD and TMHC. We’ll be watching them closely.
ABT is trading at $115 after hours, so that’s a head start on tomorrow, hopefully. That’s all I’ve got for now, have a great day and happy trading!